News Corp (NASDAQ:NWSA), the global media and information services company, has reported details of its ongoing stock repurchase program in a recent filing with the Securities and Exchange Commission. The company, which is dual-listed on the NASDAQ and the Australian Securities Exchange (ASX), is actively buying back its Class A and Class B common stock under a $1 billion repurchase authorization.
The filing, dated June 18, 2024, indicates that News Corp is required to disclose daily transactions to the ASX as part of its repurchase activities. These disclosures are also included in the company's quarterly and annual reports to provide transparency to its shareholders.
The repurchase program is part of News Corp's broader strategy to manage its capital allocation and return value to its shareholders. The company's management has the discretion to repurchase shares from time to time, depending on market conditions, stock price, alternative investment opportunities, and compliance with relevant laws and regulations.
As of the date of the SEC filing, News Corp has not disclosed the specific number of shares it has repurchased or the exact amount of money spent on the buybacks. The company's next quarterly or annual report is expected to provide updated details on the progress of the stock repurchase program.
This news is based on the latest 8-K filing by News Corp with the Securities and Exchange Commission and serves as a factual update on the company's ongoing financial activities.
In other recent news, News Corp reported a 53% surge in free cash flow to $491 million in the third quarter of fiscal year 2024, despite a slight dip in total revenues and earnings per share. The company has seen encouraging trends in digital subscriptions and cost savings, with digital revenues now constituting over half of the total revenue.
Furthermore, News Corp has announced plans for digital expansion, particularly with The Times of London venturing into the US market. These recent developments reflect News Corp's strategic focus on transforming its business model, emphasizing digital revenues while managing cost efficiencies.
These updates are part of the recent developments in the company's business strategy and financial performance.
InvestingPro Insights
InvestingPro data highlights News Corp's market presence with a robust market cap of $15.5 billion. The company's P/E ratio stands at 76.02, which adjusts to a lower 47.55 when looking at the last twelve months as of Q3 2024. While the PEG ratio for the same period shows a negative value of -3.55, indicating potential concerns over future growth relative to earnings, the Price/Book ratio is a more grounded 1.93, suggesting a reasonable valuation of the company's assets relative to its share price.
Despite a slight decline in revenue growth of -1.77% in the last twelve months as of Q3 2024, News Corp has maintained a substantial gross profit margin of 49.55%, with a gross profit of $4.926 billion. Additionally, the company has demonstrated a solid operating income margin of 7.83%. These figures, combined with a steady EBITDA growth of 9.5% for the same period, reflect a stable operational performance.
InvestingPro Tips suggest that investors consider the company's consistent dividend yield, currently at 0.74%, and its positive price total return over the last six months of 15.77%. For those looking to delve deeper into the financial metrics and strategic insights, InvestingPro offers 15 additional tips to guide investment decisions. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking even more valuable investment analysis.
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